The government has distanced itself from a report which calls for a 50 per cent inheritance tax on the most wealthy.

The move came after the Labour-supporting Institute for Public Policy Research called for the new tax band in order to fund inheritance tax cuts on the middle classes.

Under the plan, estates of over £808,000 would pay the top band - which would raise £147 million a year at the same time as cutting death duty for nine out of 10 people.

"Obviously the IPPR make proposals and issue reports from time to time. Ten Downing Street played no part in this work," said a spokesman.